Hey y’all—I'm really feeling the financial squeeze with skyrocketing monthly payments under SAVE. I make about $58k/year, and I can’t sustain paying $700/month. Lowering my payment is a must—but I'm stuck between continuing with SAVE (despite its legal limbo) or switching to IBR now and securing something stable.
Why Lower Payments Matter
SAVE offered significantly lower payments—capped at 5–10% of your discretionary income—but those benefits are blocked by court rulings, and interest is accruing again as of August 1, 2025.
That means balances are ballooning, and there’s no progress toward forgiveness. I simply can’t afford to have my debt grow unchecked.
Staying on SAVE—Risk vs. Reward
Why I’m tempted to hold off for now:
Awaiting legal clarity—If SAVE’s benefits are reinstated, I could regain lower payments or forgiveness options.
Minimal immediate payment—Forbearance remains (though doesn't count toward forgiveness), giving me breathing room while things shake out.
But… the risks are real:
Interest is already accruing.
No forgiveness credit is being earned.
The new Repayment Assistance Plan (RAP) launching in 2026 will be less forgiving—30-year terms, $10 minimum payment, based on AGI instead of discretionary income. Looks tougher for people like me.
Switching to IBR—Pros and Cons
Pros:
Legally sound and operational—IBR is the only IDR plan still assured after others get phased out by 2028.
Stops militant balance growth and resumes earning forgiveness credit.
Includes a 3-year interest subsidy on Direct Subsidized Loans if payment doesn’t cover accruing interest.
Cons:
Higher payments than SAVE ideal—10–15% of discretionary income versus SAVE’s 5–10% cap.
But given SAVE’s promised structure is blocked, it may still result in a lower effective payment than watching interest continue to build under SAVE now.
TL;DR – What Should I Do?
Staying on SAVE = hope for legal rescue, but watch your balance grow and your payment options vanish.
Moving to IBR = secure, functional plan, resumes forgiveness, halves your stress and payment—even if it’s not as low as SAVE once was.
What’s your take? Have you stayed on SAVE and waited it out? Or pulled the trigger and moved to IBR? Let me know what’s worked for you—or what you're weighing in this mess.
Do I switch from SAVE to IBR now for lower payments—or ride out the legal uncertainty?
byu/Acrobatic-Celery-474 inStudentLoans
Posted by Acrobatic-Celery-474
5 Comments
Jesus this is so confusing! Is this generation correct then?????
The SAVE administrative forbearance is still active. This means:
You are not required to make payments yet, regardless of what the “start date” shows.
Forbearance continues until the legal or policy status changes, or servicers are ready to bill properly. Mohela +15
The displayed repayment date is simply a system-generated projection, not an enforcement trigger.
I’m gonna laugh when everyvody switches out of save, only to have the courts say that those still currently on save are entitled to that plan.
At 58k just pay it off. Hoping for forgiveness is a pipe dream now that student loans are a political football
What do you mean by skyrocketing monthly payments under SAVE? Everyone on SAVE is on an administrative forbearance and no payments are currently due. No other payment plan is going to have a lower payment than SAVE right now because your SAVE payment is $0.
Are you going for forgiveness in 20 years? If so, just let the interest accumulate and move to IBR when you are forced to. Ideally from PAYE first then to IBR.